Budget 2022 delivers no surprises, but execution will be the key
Wellington, 19 May 2022 – “Budget 2022 has shown the Government’s determination not to deviate from its wide-sweeping reform goals, while acknowledging the overt need to buffer current cost of living challenges. But there is a risk in the current environment that this will not fully address the impacts for much of the general population who are facing into acute price increases, falling house prices and higher interest rates”, says Deloitte NZ CEO Mike Horne.
“It was good to see the Government provide some clarity on its thinking around the future for a successful and prosperous Aotearoa with Budget 2022 highlighting major investments in health, climate and infrastructure as being the key levers for doing so.”
But Mr Horne notes there remain real questions as to the breadth and speed of the agenda in the current environment. “Longer term success will ultimately be determined not by the ambition of the reform programmes but by capability and execution. Sometimes less is more,” he said.
“The economic outlook remains cautiously positive, but concerns around inflation and interest rates remain high, and the impact of borders reopening is yet to be seen. It is finely balanced, as should that economic projection not play out as projected then the ability to face off to future shocks and deliver the desired reform and investment is significantly challenged,” concludes Mr Horne.
For Deloitte’s full Budget 2022 commentary visit https://www2.deloitte.com/nz/budget2022
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